1. Field of the Invention
The present invention is directed to a system and method of auctioning at least one item over a network, comprising a single access fee for participation in at least one auction event, and allowing participants to place a plurality of subsequent bids free of charge.
2. Description of the Related Art
Auctions have been employed over the years to sell a variety of items, goods, and property. Specifically, auctions traditionally involve participants who submit bids for a particular item, wherein the bid reflects an amount the participant is willing to pay for the item. Multiple participants engage in the auction and vie for the same auction item, each placing one or a plurality of bids in an attempt to out-compete the other participants in the auction and win the item. A participant “wins” the item if they submit a bid that no other participant is willing to exceed.
Auctions take many forms. For instance, live auctions have classically been conducted by an auctioneer who presents the physical auction item and verbally seeks bids from participants gathered before the auctioneer. A minimum bid is suggested, or a maximum price is established, and the floor is opened to bids from the participants until one participant wins the item. Some auctions proceed on paper, and are thus termed “silent auctions.” In these silent auctions, there is no auctioneer, but rather a piece of paper placed near the auction item, and participants write their bids on the piece of paper. The auction remains open for a predetermined period of time, after which the participant with the most recent and/or and highest bid wins the item.
Since the dawn of the digital age, auctions are now also conducted online, such as over the Internet. Participants can place a bid with the click of a button, and the host website often presents information pertaining to the auction, including time remaining for the auction, or the current bid amount. Moreover, in some online auctions, the price for the auction item can only be increased in certain monetary increments, which can be as little as a penny per each bid, as in the case of “penny auctions.” In some auctions, the time remaining is reset every time a bid is placed, or when a bid is placed within a particular time window, such as in the last seconds of the auction. Accordingly, known auctions encourage the participants to continue bidding.
Many online auctions attract and entice people to participate by touting the sale of auction items at prices drastically lower than retail value, and hence appear to offer savings to participants. However, these online auctions also charge a fee for each bid placed, creating hidden fees that increase the total amount of money a participant pays for an item. Moreover, participants are charged for every bid placed, even if he/she does not ultimately win the item.
The field of online auctions is in need of an auction system to sell items at reduced prices and still effectively save participants money.